Buckeye Reports July-September Results.Business Editors MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Oct. 21, 2002 Buckeye buckeye: see horse chestnut. buckeye Any of about 13 trees and shrubs of the genus Aesculus (family Hippocastanaceae), native to North America, southeastern Europe, and eastern Asia. Technologies Inc. (NYSE NYSE See: New York Stock Exchange : BKI BKI Babbar Khalsa International BKI Kota Kinabalu, Sabah, Malaysia - Kota Kinabalu (Airport Code) BKI Bible Knowledge Institute BKI Brasil Kaffe Import (Danish Coffee Importer) ) today announced that its July-September, 2002 sales were $156.4 million and that it incurred a one cent per share loss. These results are approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. equal to sales of $155.2 million and breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations earnings reported in the same period last year. Buckeye Chairman, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. E. Cannon commented that, "This is the second consecutive quarter in which our losses have been reduced. We believe, as we said in August, that we will be modestly profitable in the October-December quarter. Importantly, we continue to be cash flow positive and are thus reducing our net debt, as is shown in the attached Financial Results Comparisons." Mr. Cannon went on to say, "With our business moving in a positive direction, it is difficult to understand why our share price has recently declined." Buckeye's quarterly conference call is scheduled for Tuesday Tuesday: see week. , October October: see month. 22, 2002, at 2:00 p.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). Buckeye, a leading manufacturer and marketer of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. cellulose cellulose, chief constituent of the cell walls of plants. Chemically, it is a carbohydrate that is a high molecular weight polysaccharide. Raw cotton is composed of 91% pure cellulose; other important natural sources are flax, hemp, jute, straw, and wood. and absorbent absorbent /ab·sor·bent/ (-sor´bent) 1. able to take in, or suck up and incorporate. 2. a tissue structure involved in absorption. 3. a substance that absorbs or promotes absorption. products, is headquartered in Memphis, Tennessee For the ancient Egyptian capital, see . Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. , USA. The Company has facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. . Its products are sold worldwide to makers of consumer and industrial goods industrial goods npl → bienes mpl de producción . Certain matters discussed in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company's operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(in $000)
Sept. 30, June 30,
2002 2002
----------- -----------
Assets
Current Assets:
Cash and cash equivalents $31,617 $56,006
Cash, restricted 3,375 3,375
Short-term investments 8,863 8,863
Accounts receivable, net 103,333 98,152
Inventories 140,092 145,103
Deferred income taxes and other 30,025 29,653
----------- -----------
Total current assets 317,305 341,152
Property, plant and equipment, net 614,655 627,752
Goodwill, net 114,150 120,399
Intellectual property and other, net 50,849 46,070
----------- -----------
Total Assets $1,096,959 $1,135,373
=========== ===========
Liabilities and shareholders' equity
Current liabilities:
Trade accounts payable $27,704 $33,789
Accrued expenses 51,086 47,832
Current portion of capital lease
obligation 793 793
Current portion of long-term debt - 22,000
----------- -----------
Total current liabilities 79,583 104,414
Long-term debt 674,837 675,396
Deferred income taxes 80,578 79,295
Capital lease obligation 2,832 3,029
Other liabilities 19,696 19,579
Shareholders' equity 239,433 253,660
----------- -----------
Total liabilities and shareholders' equity $1,096,959 $1,135,373
=========== ===========
BUCKEYE TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in $000)
Three Months Ended
September 30,
-----------------------
2002 2001
----------- -----------
Net sales $156,425 $155,157
Cost of goods sold 136,044 135,112
----------- -----------
Gross margin 20,381 20,045
Selling, research and administrative
expenses 8,943 8,621
----------- -----------
Operating income 11,438 11,424
Net interest expense and amortization of
debt costs 12,126 10,830
Foreign exchange, amortization of
intangibles and other 90 576
----------- -----------
Income (loss) before income taxes and
cumulative effect of change in
accounting (778) 18
Income tax expense (benefit) (259) 6
----------- -----------
Income (loss) before cumulative effect of
change in accounting (519) 12
Cumulative effect of change in accounting
(net of tax of $0) (11,500)(a)
----------- -----------
Net income (loss) $(519) $(11,488)
=========== ===========
Earnings (loss) per share before cumulative
effect of change in accounting
Basic earnings (loss) per share $(0.01) $0.00
Diluted earnings (loss) per share $(0.01) $0.00
Cumulative effect of change in accounting
Basic earnings (loss) per share $- $(0.33)
Diluted earnings (loss) per share $- $(0.33)
Earnings (loss) per share
Basic earnings (loss) per share $(0.01) $(0.33)
Diluted earnings (loss) per share $(0.01) $(0.33)
Weighted average shares for basic earnings
per share 36,948,900 34,442,702
Adjusted weighted average shares for
diluted earnings per share 36,948,900 34,442,702
EBITDA $23,814 $21,678
(a) This reflects the impairment of Goodwill in the Company's
converting business, in accordance with the Statement of Financial
Accounting Standards No. 142, Goodwill and Other Intangible Assets.
BUCKEYE TECHNOLOGIES INC.
FINANCIAL RESULTS COMPARISONS
(in $millions)
Results Variance to Variance to
Jul-Sep 02 Apr-Jun 02 Jul-Sep 01
------------ ------------ -----------
Sales $156.4 $(3.7) $1.2
Gross Margin 20.4 0.1 0.4
Operating Income 11.4 1.5 (1) 0.0
Net Income (Loss) (0.5) 2.1 (1) (0.5)(2)
Avg. Shares - Diluted (millions) 36.9 1.2 2.5
Earnings (Loss) Per Share (0.01) 0.06 (1) (0.01)(2)
EBITDA (3) 23.8 3.3 2.1
% of sales 15.2% 2.4 pts 1.2 pts
Net Interest & Debt Amortization 12.1 (0.4) 1.3 (4)
Depreciation & Amortization 12.8 (0.4) 1.2
Capital Spending 4.6 (2.7) (12.2)
Net Debt (5) 626.5 (3.9) (35.5)
Credit Facility Available 15.9 4.8 (14.7)
Cash & Short-term Investments (6) 40.5 (24.4) 26.4
------------ --------- --------
Liquidity 56.4 (19.6)(7) 11.7
------------ --------- --------
(1) The Apr-Jun 02 variance excludes restructuring charges of $6.9
million after tax or ($0.19) per share reported last quarter.
These charges relate primarily to the write-off of obsolete
nonwovens packaging equipment that has been replaced with more
efficient StacPac(TM) lines. The before-tax operating income
impact was $10.4 million. There were no similar charges affecting
this year's results.
(2) The Jul-Sep 01 variance excludes the prior year $11.5 million
after tax or ($0.33) per share cumulative effect of a change in
accounting related to the impairment of goodwill for the Company's
small single-site converting business. There were no similar
charges affecting this year's results.
(3) EBITDA is defined as earnings before interest, taxes,
depreciation, depletion, amortization and non-recurring items.
(4) $1.7 million of interest was capitalized in Jul-Sep 01.
(5) Net debt is equal to balance sheet debt and capital leases net of
an interest-rate swap, cash, and short-term investments.
(6) Excludes $3.4 million of restricted cash.
(7) Buckeye repaid a $22 million note to UPM-Kymenne on August 20,
2002.
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